Fractional Reserve Banking Should Be Illegal

People are going to say that this post is too short, too disorganized, and not well researched. I agree. I only became aware of fractional reserve banking a few weeks ago so I am no expert. So please feel free to correct me where I am wrong.
Fractional Reserve Banking is the practice, authorized by the STATE, of banks pretending to have 100 times more money than they do in deposits and "assets" and loaning 90% of it out at interest. This apparently controls or slows the inflation caused by increasing the money supply. Apparently straight fiat money would be so inflationary the system would always collapse quickly. Our system though we can now see is collapsing.
In the first place, inflation is robbery. .Hard working honest people are robbed of their savings. Secondly, the system only works for the FED because as the FED prints up money at the request of congress to grow the deficit to pay interest to the FED, that interest can only be payed by the income tax, which is legalized by an amendment to the Constitution that never happened. The 16th Amendment was never ratified by the states. The declaration that it was ratified was a lie and therefor should be found by the Supreme Court to be null and void. Unfortunately for the American People the Supreme Court (that body of august gods and goddesses who have sworn to uphold the Constitution and make absolute judgment on the validity of our laws, those beasts) are not about to do so.
I don't recall in any history lesson of the American people authorizing fractional reserve banking. Most of the American people are not even aware it exists. They live in a la de da world where 911 was not an inside job and our soldiers and drones don't kill innocents but I am getting off the subject.
I told you this was disorganized so please help me along, or attack away




[edit on 1-3-2010 by m khan]

I starred and flagged you anyway, kahn, you have figured it out. Now the bankers are your enemy, and every time you see one, you will think of the evil FED. I too and against the FED and all of their practices. May I suggest you research the Creature from Jekyll Island? Some links for you.

The Creature from Jekyll Island A Second Look at the Federal Reserve

The Creature from Jekyll Island

Fed Would Be Shut Down If It Were Audited, Expert Says

Is the Federal Reserve Engaged in Acts of Economic Warfare Against America?

Government Is Sued Over Seizure of Liberty Dollars

The Bank of the United States (1816-36), an early attempt at an American central bank, was abolished by President Andrew Jackson, who believed that it threatened the nation. He wrote: "The bold effort the present bank had made to control the government, the distress it had wantonly produced...are but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution or the establishment of another like it."

Thomas Jefferson wrote: "The Central Bank is an institution of the most deadly hostility existing against the principles and form of our Constitution...if the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."
(Federalist Papers)

Does that not describe the situation in America today?

America: Freedom to Fascism - Director's Authorized Version

video.google.com...#
(Unable to Embed Video)

I think that there should be a constitutional amendment that would outlaw charging interest on money that did not exist before the loan. Oh heck- let's just declare fractional lending counterfieting and get it over with. (some of the european punishments for counterfeiting were brutal. )

reply to post by m khan


The last Guy that not only realized the dangers that you just posted concerning the Federal reserve also took steps to abolish it with Executive Order 11110 signed June 4th, 1963. We all know what happened to JFK.

reply to post by ..5..


If the money didn't exist before the loan then what has been lent???
If the intrest is (say) 10% that you have to pay back on top of the loan, are you in fact paying back 110% ????

things to think about


have fun

Al

Originally posted by m khan
People are going to say that this post is too short, too disorganized, and not well researched.

Not at all. Actually I would say your post is indicative of the normal response of most people when thye finally 'get it' regarding the banking industry and the precepts upon which it is founded.

Fractional Reserve Banking is the practice, authorized by the STATE, of banks pretending to have 100 times more money than they do in deposits and "assets" and loaning 90% of it out at interest.

Please don't misunderstand, this is not a 'correction' per se, but a point of perspective. The STATE as we understand it, may declare this to be authorized, but that seems to imply that the matter was at one point open to debate. It was not. The transnational banking cartel adopted this practice as an industry standard well before nation states like the USA ever even existed. It was a scam which was engendered by the 'elite' of past 'ruling families' before any form of modern representative government ever existed. The fact that the STATE claims to 'authorize' it is to create the false perception that the STATE has a say in this matter, They do not. The Central Banking system is the front-man for this practice, which serve to remove monetary policy from the hands of the government and relinquish it to the hands of the private banking industry.

Presidents like Andrew Jackson, as well as a number of others KNEW this was a corrupted process which bleeds wealth into the hands of the middlemen-bankers, and in our times has evolved to include industries and financial vehicles all designed to increase the bleeding.

This apparently controls or slows the inflation caused by increasing the money supply. Apparently straight fiat money would be so inflationary the system would always collapse quickly. Our system though we can now see is collapsing.

The Monetary policy IS the tool which allows a single institution to 'decide' when inflation occurs, and they use it to their benefit. We know that there are literally TRILLIONS of 'missing' dollars in the system. And the bankers KNOW exactly where they went. Unfortunately, because of the obfuscatory nature of the financial vehicles and 'secret' or 'not-so-secret' government collusion, We the actual SOURCES of that wealth, have no way to define who is doing the stealing and to what end the so-called money is used.

This collapse, by logical extension, MUST BE PLANNED, or AT LEAST FORESEEN by the banking industry unless they are utterly incompetent, or completely uncaring about the effects of their policies on the 'human resources' of a nation.

In the first place, inflation is robbery. .Hard working honest people are robbed of their savings. Secondly, the system only works for the FED because as the FED prints up money at the request of congress to grow the deficit to pay interest to the FED...

Inflation is a TAX. A hidden tax which enables economic manipulation of a state. To characterize it as robbery is appropriate considering the FED actually insulates itself from the effects, always protecting the Banking industry and its prime wealth hoarders.

... that interest can only be payed by the income tax, which is legalized by an amendment to the Constitution that never happened. The 16th Amendment was never ratified by the states. The declaration that it was ratified was a lie and therefor should be found by the Supreme Court to be null and void. Unfortunately for the American People the Supreme Court (that body of august gods and goddesses who have sworn to uphold the Constitution and make absolute judgment on the validity of our laws, those beasts) are not about to do so.

Income Tax was ratified... illegally. If you haven't already read "The creature from Jekyll Island" I strongly suggest you read it. The manipulation of the political machinery and the usurpation of the Press were the principle weapons used against the people, who until 1913 never had an 'income tax' like we see today. In reality, the government has even gone out of it's way to conceal that the states votes 'in support' of this 16th ammendment were improperly tallied, ignored when troublesome, or outright 'bought' by the banking cartel, which had been trying to get a foothold in the United States for nearly two centuries.

The Supreme Court has even ruled on the unconstitutional nature of the tax, but somehow, they consider those judgments to be 'inconsequential'.

I don't recall in any history lesson of the American people authorizing fractional reserve banking. Most of the American people are not even aware it exists.

We never had an opportunity to set and maintain iron-clad controls of the degree of 'fractional' ratios, and the Bankers have deemed it in their interest to keep it that way. They claim their corporate charters, which our representatives 'approve' regularly, justifies the 'profit above all' focus of the cartel.

These people have caused wars, have stood by entire nations starved, have plead 'poverty' when the gambling got out of control, and continue - through their Madison Avenue propaganda to cast themselves as innocent of any misdeeds.

They are the true owners of wealth, not because the produced ANYTHING FOR THE COUNTRY, not because they EARNED the trust of the nation, but because they could do something other industries (until a few weeks ago) couldn't do - they could virtually guarantee who wins any election.

Their entire profit scam is an abomination to any who feel that the fruits of labor belong to those who labor, not middlemen siphoning off every penny they can with service fees and a monopoly on currency.

Uh huh....its obvious isn't it. I personally worked in retail banking for 3+ years and not one time did I ever meet a single bank employee that was familiar with the fractional reserve banking scheme, not even the branch managers. When I would mention it and my opinion that it is immoral and unsustainable, they'd literally roll their eyes or tell me that I didn't know what I was talking about. Who's laughing now?

Often when in sales meetings the managers would discuss the "profitability" of the branch and how it was related to our aggregate totals in deposit and loan sales. One day when I was feeling particularly annoyed by the constant pressure applied for more, because nothing was ever enough, I asked the managers to explain how the branch's profitability was at risk. I cannot remember the exact numbers but the example went something like this.

The bank makes say a home mortgage loan for 100k to an individual and due to fractional reserve banking requirements the bank only has to put up something like 20% (20k) of its own money. The borrower agrees to pay back (if they follow the 30yr schedule) something like 200k to the bank, how the hell can we be losing money? This formula is applicable to all types of loans with varying degrees of reserve requirements and in the end the bank always ends up with very little liability. Furthermore, the bank retains possession of the object of the loan in cases of default as well as in the cases of mortgages the borrower is often required to carry private mortgage insurance which guarantees the bank's liability will be covered. They were not amused and again told me I didn't know what I was talking about.

On a side note, I asked once for a 5k raise since I was the top performer in the branch, didn't recieve any sort of raise after 1yr, and was hired under a completely different compensation program than what was currently implemented that coincedentally cut potential earnings in half. I was again told that the branch couldn't afford it. So, I went to my computer...looked up the earnings of our CEO for the past year...printed it and put it on the manager's desk. He made more than $300,000,000 that year alone, stock options of course so it could avoid taxes! I quit and took my college degree to an oil rig to roughneck the next month!

reply to post by budaruskie


I work at a University, and take great pleasure in asking the Economics and banking management students about their curriculum and what they learn about fractional reserve lending....

Zip, nothing, nada....

No surprises there.

Fractional Reserve banking doesn't need to be made illegal.

Competition in currency simply needs to be legalized.

Any rational individual would simply cease to use ponzi dollars in favor of real currency.

If a bank decides it wants to go the route of ponzi banking, let it. They would put themselves out of business rapidly. No laws necessary. Government simply needs to stop imposing its tyranny on us.

I have as of late taken an interest in the Rothschild dynasty. They have controlled the currency of most western countries....and we the people line their pockets through the money making endeavors of war. Nathan Rothschild discovered that lending to governments was much more lucrative than lending to the individual.

Now we have several Western countries neck deep in war and debt. The interest is compounding daily and the banks (executives) reap the rewards for obscuring the true evil that they perpetuate.


"Permit me to issue and control the money of a nation, and I care not who makes it's laws" Nathan Rothschild

current.com...

It's amazing the response you get from people when you try to explain this to them.
The usual reply is .. of course the banks have money ... or ... just total disbelief that the banks only deal in debt.

I agree it is a strange concept to grasp at first, but most people usually accept maybe there is "some truth in it" and then happily go back to being slaves to the banks.

To the OP, good thread and keep spreading the news

I am of the belief that usurers deserve capital punishment (see Ezekiel 18:13) and it should be so in law as well for then we wouldn't be in this mess of our own making. And truth be told these banksters have the power to kill entire nations through their power to loan on usury.

And remember what Calvini said in the film, "The International" about the purpose of banks and the relationship between money, arms dealings and global warfare: "Their objective isn't to control the conflict, it's to control the debt that the conflict produces. You see, the real value of a conflict, the true value, is in the debt that it creates. You control the debt, you control everything. You find this upsetting, yes? But this is the very essence of the banking industry, to make us all, whether we be nations or individuals, slaves to debt."

Here's some suggested reading material from the net:

Billions for the Bankers, Debts for the People--An excellent primer on paper money
www.scribd.com...

Famous Quotations on Money--A selection of quotes from politicians, bankers and others about money
www.scribd.com...

Usury Destroyer of Nations--A classic on the immorality of usury (or interest)
www.scribd.com...

Theocratic vs. Democratic Money--One of the best and clearest booklets on the topic from a Christian and Constitutionalist perspective
www.scribd.com...

Money, Banking & Usury--Comic book explaining money and banking
www.scribd.com...